We are now seeing prospective home buyers that have had a bankruptcy, foreclosure or short sale in the past looking to re-engage in to home ownership. So, the following question gets asked often now: When can someone who had a bankruptcy, foreclosure or short sale purchase a home again? Below is a generic breakdown of when someone can purchase a home after such an event:
Conventional Loans:
· Short sale/Deed in lieu of foreclosure: 2 years (with 20 percent down) OR 4 years with 10% down.
· Bankruptcy: 4 years from discharge date
· Foreclosure: 7 years from the date the bank takes the home back.
FHA Loans:
· Chapter 7 Bankruptcy: 2 years
· Chapter 13 Bankruptcy: Can be in it, provided they have been making on time payments for a minimum of 1 year and acquire permission from trustee.
· Foreclosure/deed in lieu/short sale: 3 years from the date the home is transferred to new owner/bank.
We are starting to see hard money lenders crop up that are willing to lend to a borrower sooner, but typically would require a minimum of 20-30% down, charge 3-5 points and offer a rate typically in the double digits.
Financial Markets
The Dow Jones ended the day down 240 points, landing at 10,913 and putting the explanation point on the worst performing quarter in 3 years. Friday’s catalyst for the sell-off actually came from China, as an important manufacturing report showed contraction for the 3rd consecutive month. This is concerning to investors because China, one of the only healthy economies, is showing signs of a slow-down. A sluggish Chinese economy could accelerate problems for the global economy.
The bond market rallied as a result of the stock market sell-off, and mortgage rates improved slightly.
Southern Nevada Real Estate and Economy
Below is an interesting article about the resurgence of the down town Las Vegas real estate market as well as commercial interest that developers have in the area.
Below is an article on a plan to develop a trail system that encompasses the entire valley. This really doesn’t have anything to do with real estate but think it’s a great concept!
